In Re.: Whistleblower Report and Criminal Complaint that Advanced Tactical Ordnance Systems LLC (ATO) Has Successfully Manipulated Dun & Bradstreet (D & B) Data to Render Useless the D-U-N-S Number System and the Service Known as “D & B Intelligence Solutions” in the Matter of the Business Identity Theft of the Defunct Pepperball Technologies Incorporated (PTI).
To Wit: ATO has created records in the D & B database to create the deception that PTI is still operating (2 ½ years after the business was closed), that ATO is affiliated with or merged with PTI (when no such legal relationship exists), and that a Headquarters in Fort Wayne, Indiana is conducting legitimate sales of PTI products through a Branch Office in San Diego, California (when the sales are actually counterfeit PTI products by a continuous criminal enterprise).
Criminal Offense Being Reported: 18 U.S.C. § 1030 – Fraud and related activity in connection with computers. Examples of Criminal Offenses Previously Reported: 18 U.S.C. § 2. Principals, 18 U.S.C. § 3. Accessory after the fact,18 U.S.C. § 4. Misprision of felony, 18 U.S.C. § 371. Conspiracy to commit offense or to defraud United States, 18 U.S.C. § 1343. Fraud by wire, radio, or television, 18 U.S.C. § 1956. Laundering of monetary instruments
August 19, 2014
Dear United States Government Officials and Officers of The Dun & Bradstreet Corporation:
We are writing to report and complain that an ongoing criminal conspiracy to defraud the United States and sell counterfeit goods has manipulated D&B data in such a manner that the database not only completely fails to reveal that the defunct PTI is out of business; but, in fact, makes the PTI identity theft able to successfully continue.
Due to serious security flaws the D&B database now deceives anyone who requests a D&B Credit Report that PTI is an ongoing business at the San Diego address of ATO.
Please review the explanation below and see Exhibit A as D&B’s description of the usefulness of their intelligence data. Then consider what was done in this real life scenario to turn it into a tool of deception.
BACKGROUND OF COSTA RICA, USA, AND GLOBAL FRAUD
The company PepperBall Technologies, Inc. (PTI) began operations in 1999 and ceased operating on January 9, 2012. We were their reseller in the Republic of Costa Rica beginning in mid-2009. Last year a public tender was issued by the Costa Rica Ministerio de Justicia y Paz for $ 600,000 in non-lethal weapons for the prison guards at La Reforma prison. It turned out to be a disaster due to a fraudulent bid submitted by a Costa Rica business. In a lengthy public comment period we learned that one of our USA suppliers in the bid had decided to support the Costa Rica fraudulent bidders. In the end the bid was won by the fraud. A Costa Rica business known as Industrial Fire and Rescue Equipment, S.A. (IFR) then sold 162,000 counterfeit PTI projectiles (supplied by ATO) to the Republic of Costa Rica.
This experience caused us to do extensive research into our USA suppliers in preparation for a fraud lawsuit. During that research we learned the following:
The company PTI did not manufacture their own products. They used Perfect Circle Projectiles LLC in Lake Forest, IL to make the pepper balls. They used Tippmann Sports LLC and Tiberius Arms LLC in Fort Wayne, IN to make their launchers, as key examples.
PTI was in financial trouble and had a lot of debt with insufficient cash flow. They had lenders who wanted out. It came to an end in January 2012 when their notes were allegedly foreclosed upon.
As part of a very detailed conspiracy to criminally impersonate the defunct PTI, two former employees in San Diego, CA, and the owners of Perfect Circle Projectiles LLC and Tiberius Arms LLC did the following:
(c) Formed a new legal entity “Advanced Tactical Ordnance Systems LLC” to receive sales proceeds under the Assumed Name “Pepperball Technologies” in Indiana.
Made numerous entries in the D&B database to create false affiliations of ATO with the closed PTI. This continues to be done now in response to our reports, as described below.
Filed a fraudulent Form SEC 10-k with the Securities and Exchange Commission to create a “cover story” of the sale of notes in connection with the end of business operations.
Made false USPTO trademark applications and renewal applications.
Filed a fraudulent lawsuit against a competitor to stop trademark infringement that did not and does not now exist.
Renewed and revised the website www.pepperball.com.
Continued to use the credit card access device of PTI for sales transactions.
Registered the closed PTI in the US government SAM System. They used the D-U-N-S Number of the closed PTI long after the number was cancelled.
Registered ATO in the SAM System to create the deception of competition in government bidding.
For around 6 months kept the old PTI office open on Nancy Ridge Drive in San Diego until a new tenant moved in.
Personally impostered as PTI employees to sell and conduct training to law enforcement, to make sales and training at the Republican National Convention in Tampa, Florida in 2012, to make sales at a booth at the 2014 SHOT Show, and to travel and make sales efforts in Egypt, Panama, and Peru.
Made arrangements to pay hush money to anyone that might challenge their theft of trademarks.
The items are ordered, the order is paid for and shipped, and no one knows that:
The “no bid sole source” PTI sale is being filled by an entirely different legal entity.
Con-artist impersonators are posing as current employees of the closed PTI.
The products are counterfeit.
The prices are highly inflated, and
The products are readily available from other suppliers.
The perfect con has succeeded for over 2 ½ years. The US Federal Bureau of Prisons is the largest victim in terms of sales according to sales data from the website www.USASpending.gov.
EXPLANATION OF THE MANIPULATION OF DUN AND BRADSTREE
We have previously reported the details of the D&B manipulation to a number of law enforcement agencies. That report is now in need of an update based on recent activity. We also believe it needs to be copied to Officers of The Dun & Bradstreet Corporation, and reported to law enforcement in New Jersey at the location of D&B headquarters. It is attached as Exhibit B.
The recent D&B manipulations are explained below:
We had information from the fraudulent lawsuit that ATO had claimed to be paying for the rights to the Pepperball “brand”. On April 18, 2014 we sent a Qui Tam warning notice to creditors we had identified at the USPTO and California UCC website. Please see our warning as Exhibit C. In response just days later, Agility Capital LLC filed a trademark assignment to a non-existent legal entity. The response of Agility Capital LLC is shown below and the first 3 pages of our report to the USPTO of the false assignment is attached as Exhibit D. The full report is on our website’s fraud warning page at http://imgasa.com/PepperBall_Fraud_Alert.html.
Assignment: 7
Reel/Frame:
5268/0515
Recorded: 04/25/2014
Pages: 5
Conveyance:
RELEASE BY SECURED PARTY
Assignor:
AGILITY CAPITAL, LLC
Exec Dt:
04/23/2014
Entity Type:
LIMITED LIABILITY COMPANY
Citizenship:
CALIFORNIA
Assignee:
PEPPERBALL-CA, INC. FORMERLY KNOWN AS PEPPERBALL TECHNOLOGIES, INC.
2713 FERGUSON RD.
FORT WAYNE, INDIANA 46809
Entity Type:
CORPORATION
Citizenship:
DELAWARE
Correspondent:
ERIN O'BRIEN
C/O COOLEY LLP
4401 EASTGATE MALL
SAN DIEGO, CA 92121
We believe Agility Capital LLC’s rapid and slipshod response demonstrates a knowledge of guilt in illegally receiving payments from the fraud. But the result of their assignment is that no existing legal entity or natural person has the trademark rights. So what is the ATO conspiracy to do now? For years they used the patent office and D&B to complete their cover story and create the illusion of a legitimate business. The screenshot below shows that they went into the D&B database and changed the name of Security With Advanced Technology, Inc. (SWAT) (the prior name of PTI until 2008) to Pepperball Technologies – Ca, Inc. at the address of their fake branch sales office! Note the D-U-N-S Number of SWAT.
Now they can continue to use D&B to fool anyone that questions them. After all D&B says that Pepperball Technologies – Ca, Inc. is at their business address in San Diego.
PRIOR REPORTS TO D&B THAT HAVE PROVEN TO BE FUTILE
We have been trying to bring this matter to the attention of D&B for months. We have attached as Exhibit E a series of emails and responses of our efforts. As you will note, they show that any system D&B claims to have that confirms data and makes it credible, is a complete failure.
PRIOR LAW ENFORCEMENT COMPLAINTS AND ONGOING INVESTIGATIONS
We have filed numerous Whistleblower Reports and Criminal Complaints regarding the ongoing criminal conspiracy and counterfeiting operation of ATO. A number of investigations of ATO at the federal level are in progress. For example, the FBI and the US Attorney General in Indianapolis, Indiana; the Inspector General’s Office of the General Services Administration; and the US Department of Justice (as a criminal investigation referral from the Inspector General’s Office of the US Department of Commerce (IGDOC)). The IGDOC complaints are related to fraud upon the US Patent and Trademark Office and / or illegal exports of controlled “pepper spray powder”.
COSTA RICA AND INTERNATIONAL NEED FOR ACCURATE D&B DATA
The fraud is in many countries other than the United States. We have found resellers claiming to sell PTI products in Argentina, South Africa, Australia, Peru, Chile, and Panama.
Starting with Costa Rica the fraud and counterfeiting must be exposed and stopped. Thus far one question has been common in Costa Rica when we discuss the fraud: If the fraud has been reported, why are they still in business in the USA?
Our answer has been to point out that the legal process in the USA can be slow. We point out that the Ponzi scheme of Bernie Madoff continued for 3 ½ years after the first reports to the Securities and Exchange Commission, and that the PTI fraud may involve as many as 35 people in 6 states.
But another reason is that D&B reports are being used to deceive the world that PTI is an ongoing business since 1999.
Therefore, we respectfully request the following:
That the false D&B entries be deleted.
That the D&B records of all of the legal entities that are part of the fraud be flagged with a ** FRAUD ALERT**.
That the General Services Administration be notified that the D-U-N-S Number of PTI has been cancelled.
That changes be made at D&B to prevent future manipulations of this nature and to respond to incoming evidence of fraud in the D&B database.
The correction of D&B data will aid the criminal prosecution in Costa Rica of IFR, and hopefully every country in which ATO has a reseller of their counterfeit PTI products.
PepperBall Technologies Reviews
In Re.: Whistleblower Report and Criminal Complaint that Advanced Tactical Ordnance Systems LLC (ATO) Has Successfully Manipulated Dun & Bradstreet (D & B) Data to Render Useless the D-U-N-S Number System and the Service Known as “D & B Intelligence Solutions” in the Matter of the Business Identity Theft of the Defunct Pepperball Technologies Incorporated (PTI).
To Wit: ATO has created records in the D & B database to create the deception that PTI is still operating (2 ½ years after the business was closed), that ATO is affiliated with or merged with PTI (when no such legal relationship exists), and that a Headquarters in Fort Wayne, Indiana is conducting legitimate sales of PTI products through a Branch Office in San Diego, California (when the sales are actually counterfeit PTI products by a continuous criminal enterprise).
Criminal Offense Being Reported: 18 U.S.C. § 1030 – Fraud and related activity in connection with computers. Examples of Criminal Offenses Previously Reported: 18 U.S.C. § 2. Principals, 18 U.S.C. § 3. Accessory after the fact,18 U.S.C. § 4. Misprision of felony, 18 U.S.C. § 371. Conspiracy to commit offense or to defraud United States, 18 U.S.C. § 1343. Fraud by wire, radio, or television, 18 U.S.C. § 1956. Laundering of monetary instruments
August 19, 2014
Dear United States Government Officials and Officers of The Dun & Bradstreet Corporation:
We are writing to report and complain that an ongoing criminal conspiracy to defraud the United States and sell counterfeit goods has manipulated D&B data in such a manner that the database not only completely fails to reveal that the defunct PTI is out of business; but, in fact, makes the PTI identity theft able to successfully continue.
Due to serious security flaws the D&B database now deceives anyone who requests a D&B Credit Report that PTI is an ongoing business at the San Diego address of ATO.
Please review the explanation below and see Exhibit A as D&B’s description of the usefulness of their intelligence data. Then consider what was done in this real life scenario to turn it into a tool of deception.
BACKGROUND OF COSTA RICA, USA, AND GLOBAL FRAUD
The company PepperBall Technologies, Inc. (PTI) began operations in 1999 and ceased operating on January 9, 2012. We were their reseller in the Republic of Costa Rica beginning in mid-2009. Last year a public tender was issued by the Costa Rica Ministerio de Justicia y Paz for $ 600,000 in non-lethal weapons for the prison guards at La Reforma prison. It turned out to be a disaster due to a fraudulent bid submitted by a Costa Rica business. In a lengthy public comment period we learned that one of our USA suppliers in the bid had decided to support the Costa Rica fraudulent bidders. In the end the bid was won by the fraud. A Costa Rica business known as Industrial Fire and Rescue Equipment, S.A. (IFR) then sold 162,000 counterfeit PTI projectiles (supplied by ATO) to the Republic of Costa Rica.
This experience caused us to do extensive research into our USA suppliers in preparation for a fraud lawsuit. During that research we learned the following:
The company PTI did not manufacture their own products. They used Perfect Circle Projectiles LLC in Lake Forest, IL to make the pepper balls. They used Tippmann Sports LLC and Tiberius Arms LLC in Fort Wayne, IN to make their launchers, as key examples.
PTI was in financial trouble and had a lot of debt with insufficient cash flow. They had lenders who wanted out. It came to an end in January 2012 when their notes were allegedly foreclosed upon.
As part of a very detailed conspiracy to criminally impersonate the defunct PTI, two former employees in San Diego, CA, and the owners of Perfect Circle Projectiles LLC and Tiberius Arms LLC did the following:
Fraudulently renewed PTI’s GSA Advantage contract.
Maintained the Yellow Pages phone book listing.
(c) Formed a new legal entity “Advanced Tactical Ordnance Systems LLC” to receive sales proceeds under the Assumed Name “Pepperball Technologies” in Indiana.
Made numerous entries in the D&B database to create false affiliations of ATO with the closed PTI. This continues to be done now in response to our reports, as described below.
Filed a fraudulent Form SEC 10-k with the Securities and Exchange Commission to create a “cover story” of the sale of notes in connection with the end of business operations.
Made false USPTO trademark applications and renewal applications.
Filed a fraudulent lawsuit against a competitor to stop trademark infringement that did not and does not now exist.
Renewed and revised the website www.pepperball.com.
Continued to use the credit card access device of PTI for sales transactions.
Registered the closed PTI in the US government SAM System. They used the D-U-N-S Number of the closed PTI long after the number was cancelled.
Registered ATO in the SAM System to create the deception of competition in government bidding.
For around 6 months kept the old PTI office open on Nancy Ridge Drive in San Diego until a new tenant moved in.
Personally impostered as PTI employees to sell and conduct training to law enforcement, to make sales and training at the Republican National Convention in Tampa, Florida in 2012, to make sales at a booth at the 2014 SHOT Show, and to travel and make sales efforts in Egypt, Panama, and Peru.
Made arrangements to pay hush money to anyone that might challenge their theft of trademarks.
The items are ordered, the order is paid for and shipped, and no one knows that:
The “no bid sole source” PTI sale is being filled by an entirely different legal entity.
Con-artist impersonators are posing as current employees of the closed PTI.
The products are counterfeit.
The prices are highly inflated, and
The products are readily available from other suppliers.
The perfect con has succeeded for over 2 ½ years. The US Federal Bureau of Prisons is the largest victim in terms of sales according to sales data from the website www.USASpending.gov.
EXPLANATION OF THE MANIPULATION OF DUN AND BRADSTREE
We have previously reported the details of the D&B manipulation to a number of law enforcement agencies. That report is now in need of an update based on recent activity. We also believe it needs to be copied to Officers of The Dun & Bradstreet Corporation, and reported to law enforcement in New Jersey at the location of D&B headquarters. It is attached as Exhibit B.
The recent D&B manipulations are explained below:
We had information from the fraudulent lawsuit that ATO had claimed to be paying for the rights to the Pepperball “brand”. On April 18, 2014 we sent a Qui Tam warning notice to creditors we had identified at the USPTO and California UCC website. Please see our warning as Exhibit C. In response just days later, Agility Capital LLC filed a trademark assignment to a non-existent legal entity. The response of Agility Capital LLC is shown below and the first 3 pages of our report to the USPTO of the false assignment is attached as Exhibit D. The full report is on our website’s fraud warning page at http://imgasa.com/PepperBall_Fraud_Alert.html.
Assignment: 7
Reel/Frame:
5268/0515
Recorded: 04/25/2014
Pages: 5
Conveyance:
RELEASE BY SECURED PARTY
Assignor:
AGILITY CAPITAL, LLC
Exec Dt:
04/23/2014
Entity Type:
LIMITED LIABILITY COMPANY
Citizenship:
CALIFORNIA
Assignee:
PEPPERBALL-CA, INC. FORMERLY KNOWN AS PEPPERBALL TECHNOLOGIES, INC.
2713 FERGUSON RD.
FORT WAYNE, INDIANA 46809
Entity Type:
CORPORATION
Citizenship:
DELAWARE
Correspondent:
ERIN O'BRIEN
C/O COOLEY LLP
4401 EASTGATE MALL
SAN DIEGO, CA 92121
We believe Agility Capital LLC’s rapid and slipshod response demonstrates a knowledge of guilt in illegally receiving payments from the fraud. But the result of their assignment is that no existing legal entity or natural person has the trademark rights. So what is the ATO conspiracy to do now? For years they used the patent office and D&B to complete their cover story and create the illusion of a legitimate business. The screenshot below shows that they went into the D&B database and changed the name of Security With Advanced Technology, Inc. (SWAT) (the prior name of PTI until 2008) to Pepperball Technologies – Ca, Inc. at the address of their fake branch sales office! Note the D-U-N-S Number of SWAT.
Now they can continue to use D&B to fool anyone that questions them. After all D&B says that Pepperball Technologies – Ca, Inc. is at their business address in San Diego.
PRIOR REPORTS TO D&B THAT HAVE PROVEN TO BE FUTILE
We have been trying to bring this matter to the attention of D&B for months. We have attached as Exhibit E a series of emails and responses of our efforts. As you will note, they show that any system D&B claims to have that confirms data and makes it credible, is a complete failure.
PRIOR LAW ENFORCEMENT COMPLAINTS AND ONGOING INVESTIGATIONS
We have filed numerous Whistleblower Reports and Criminal Complaints regarding the ongoing criminal conspiracy and counterfeiting operation of ATO. A number of investigations of ATO at the federal level are in progress. For example, the FBI and the US Attorney General in Indianapolis, Indiana; the Inspector General’s Office of the General Services Administration; and the US Department of Justice (as a criminal investigation referral from the Inspector General’s Office of the US Department of Commerce (IGDOC)). The IGDOC complaints are related to fraud upon the US Patent and Trademark Office and / or illegal exports of controlled “pepper spray powder”.
COSTA RICA AND INTERNATIONAL NEED FOR ACCURATE D&B DATA
The fraud is in many countries other than the United States. We have found resellers claiming to sell PTI products in Argentina, South Africa, Australia, Peru, Chile, and Panama.
Starting with Costa Rica the fraud and counterfeiting must be exposed and stopped. Thus far one question has been common in Costa Rica when we discuss the fraud: If the fraud has been reported, why are they still in business in the USA?
Our answer has been to point out that the legal process in the USA can be slow. We point out that the Ponzi scheme of Bernie Madoff continued for 3 ½ years after the first reports to the Securities and Exchange Commission, and that the PTI fraud may involve as many as 35 people in 6 states.
But another reason is that D&B reports are being used to deceive the world that PTI is an ongoing business since 1999.
Therefore, we respectfully request the following:
That the false D&B entries be deleted.
That the D&B records of all of the legal entities that are part of the fraud be flagged with a ** FRAUD ALERT**.
That the General Services Administration be notified that the D-U-N-S Number of PTI has been cancelled.
That changes be made at D&B to prevent future manipulations of this nature and to respond to incoming evidence of fraud in the D&B database.
The correction of D&B data will aid the criminal prosecution in Costa Rica of IFR, and hopefully every country in which ATO has a reseller of their counterfeit PTI products.
Respectfully submitted,
Christopher M. Edwards
Director of Marketing IMGASA
www.imgasa.com